Ethereum is one of the most important cryptocurrencies in the world, with the second-largest market capitalization level, and yet it has still struggled as a result of the price corrections and the relatively low price action levels. However, investors remain optimistic that the marketplace still has plenty of time to change and evolve, believing that the current downswings are nothing more than the normal movements that occur before the prices start growing again. According to Binance data, historical Ethereum price prediction levels have always been fluctuating, and it’s expected that values will be shifting and changing. No trend is permanent in the crypto world, and even though coins such as Ethereum have become stronger and more consolidated and are, therefore, able to hold on to their price points for lower, they are nonetheless subjected to changes.
$3,000
As the prices started off reasonably well at the beginning of 2024, only to plunge again and stagnate during the second and third quarters, investors have begun to wonder about when the situation will change and how considerable the upcoming market shift will be. Having a rough idea about these figures allows market participants to make sounder, more objective decisions when it comes to their trading plans and can elevate their likelihood of success and the possibility of increasing the revenue levels. This is no small feat in a marketplace as changing as that of cryptocurrencies, where prices could shift considerably in a matter of less than twenty-four hours.
While some investors believed that the end of summer and the beginning of autumn would bring price growth to the forefront, it appears now that those estimations have been far too optimistic and that it is much more likely for a rally to occur during the fourth quarter. A change around October would naturally be best, but there’s also a possibility that positive movements will take place in November or even December. The process will likely be slow and steady rather than swift, so investors must be attentive and look for the tell-tale signs.
As of August 28th, Ether remains above the EMA 50 support level, and price capitulation has already taken place. During the near future, the price is expected to remain relatively stagnant and within the same area, meaning that there is indeed a very slim likelihood that a breakout will take place before Q4.
$2,700
Right now, the biggest obstacle Ethereum must face on its road to recovery is the significant resistance level located around the $2,700 area. Analysts predict that this region will continue to be a challenge in the future but that a strong market will ultimately succeed in surpassing the level. Right now, there is no evidence that the level has been broken, as the price was unable to hold itself above the level for a sufficient amount of time. The lack of volume is another issue and one that is directly correlated with the price action.
A hypothetical rally that takes the price points to $2,700 would potentially liquidate more than $481 million worth of cumulative leveraged short positions across several different exchanges. At the same time, the coin is still not completely out of the woods, and there’s the potential for further corrections in the future that will take prices even lower. The level that could be achieved is $1,750, something that will definitely impact investors and their portfolios. A dead cat event is also possible. This scenario involves a short-lived, temporary recovery of asset prices after a difficult bear market that brought considerable downswing trends. Small rallies are common during downtrend episodes, and even though they are typically not long-lasting at all, they are still crucial for traders and can help many regain some control of their portfolios.
ETH/BTC
Ethereum and Bitcoin are the most important crypto coins in the world, with the highest market capitalization levels. This means that they have frequently been compared to each other, with traders discussing the pros and cons of investing in each of them. Consequently, the ETH/BTC pair receives a lot of scrutiny as well. Its purpose is to show the price of Ethereum in BTC, so, for instance, if Bitcoin is at $40,000 and Ethereum sits at $2,000, the pair trades at 0.05. Right now, Ethereum is under the effects of a bearish outlook once again, and one of the main factors in this regard is the positive correlation between ETH/BTC and the United States Dollar Index.
This figure has dropped nearly 5.40% compared to the peak it recorded earlier this year. Data gathered on August 26th showed that there was a 30-day average correlation between the crypto pair and the DXY, located at 0.78, considerably higher than 0.10 in January 2024. This trend indicates that traders have been moving away from Ethereum recently and that many have started favoring and prioritizing BTC-based transactions. If the positive correlation continues to become stronger, this could send BTC/ETH even lower in September.
The first month of autumn is traditionally not a good time for cryptocurrencies, with positive returns being a very rare occurrence during this time of the year. October, on the other hand, is known for its consistent rallies, having earned the moniker Uptober among community members as a result. November comes with more subtle upward trends but still shows a stronger performance than September. After a difficult summer, investors are definitely not thrilled about the prospect of further losses and stagnation at the beginning of autumn, but it’s important to be aware of this trend in order to protect your portfolio and ensure the safety and security of your holdings.
If ETH/BTC breaks below the support level, which the charts currently consider to be at 0.0427, a decline of around 10% could take place, bringing the levels to the lowest they’ve been since April 2021.
The bottom line
Ethereum is much stronger than it used to be as a result of becoming more mature and stable, but there are still several things you need to take into account. Prices remain volatile, and fluctuations are just as likely as ever to take place. If you want to ensure your transactions remain profitable, remember to create a solid strategy and remain knowledgeable about the latest market developments. It’s the only way to be prepared.
